A marked difference from the 2008 global financial crisis is that the current secondary market is comparatively far more mature and robust, with established players and mores. Although those differences contribute to its resilience, the secondary market has not been – and will not be – spared certain adversities arising from the coronavirus pandemic. There is a path, however, for the market to evolve in ways that enable buyers and sellers to thrive and maintain their practices. Those and other topics were addressed in a recent Proskauer program featuring partners Warren Allan, Galen R. Lewis, Jeremy Naylor and Michael R. Suppappola. This first article in a two-part series details the current state of the secondary market, as well as certain liquidity and tax considerations likely to influence the remainder of 2020. The second article
will evaluate current and anticipated trends in deal terms resulting from the recent crisis, while also exploring the secondaries fundraising landscape and regulatory considerations. For additional commentary from Proskauer attorneys, see “Proskauer Partner and SEC Enforcement Division Veteran Ronald Wood Explains the Implications for Fund Managers of Structure and Staffing Changes at the SEC
” (Mar. 14, 2013); and “Christopher Wells Discusses Challenges and Concerns in Negotiating and Administering Side Letters
” (Feb. 1, 2013).